Crypto traders are increasing their bets that Bitcoin’s price will hit $100,000 before the year ends. This follows BTC’s reclaim of the psychological $90,000 level, with optimism that the Fed will lower rates at next month’s FOMC meeting.
Odds Of Bitcoin Hitting $100k Rise To 52%
Polymarket data shows a 52% chance that BTC will hit $100,000 before the year ends. The odds have increased by over 17% amid the flagship crypto’s recent surge above $90,000.
Source: PolymarketBitcoin had dropped below $100,000 earlier this month for the first time since June, sparking concerns of a bear market. BTC dropped to as low as $81,000 but has since recovered amid optimism of another rate cut in December.
As CoinGape reported, the odds of a December Fed rate cut have climbed to 85%, after dropping to as low as 30% last week. The surge in the rate-cut odds followed Fed President John Williams’ remarks, which signaled his support for another near-term cut.
Meanwhile, the PPI inflation report also strengthened the case for another cut, as it indicated that the softening labor market is a greater concern than rising inflation. Furthermore, as part of the dovish Fed pivot, the U.S. central bank plans to end quantitative tightening (QT) on December 1, which could pave the way to quantitative easing (QE).
This provides a bullish outlook for Bitcoin and other risk assets as more liquidity could flow into them. Ark Invest’s CEO, Cathie Wood, recently stated that they expect the liquidity squeeze to end within a month, alluding to the Fed’s dovish pivot.
Tom Lee Predicts Year-End Rally Above $100k
During an interview on CNBC’s Closing Bell, BitMine’s Chairman, Tom Lee, stated that Bitcoin is likely to be above $100,000 by year-end. He also raised the possibility that the flagship crypto could reach new highs above $126,000 before the year ends.
Tom Lee noted that BTC’s price moves in just 10 days out of the year. “I think some of those best days are still going to happen before the year ends,” he added. The BitMine chairman also opined that the crypto market is near a bottom.
He alluded to the ’10/10′ crypto crash and how that wiped out leveraged positions. Tom Lee further noted that something similar happened in 2022 and that it took about 8 weeks for the market to recover. With a similar timeline in mind, he expects the market to start recovering.
Meanwhile, market expert Tomas alluded to the weakening dollar index, which he noted is good for risk assets like stocks and Bitcoin. The expert remarked that there have been two bearish factors for the dollar, including the emergence of dovish Kevin Hassett as the clear favorite for the Fed chair role. The other factor is the surge in the odds of a 25 basis points (bps) December rate cut to over 85%.
Source: https://coingape.com/crypto-traders-bet-on-bitcoin-hitting-100k-by-year-end-amid-dovish-fed-pivot/
